Embarking on your investment journey, you may not always outsmart the market. But wouldn’t it be fantastic if you could adopt strategies that lower your tax burden, enhancing your long-term returns?
The illustrious investor Burton Malkiel, now leading Wealthfront, once put pen to paper to emphasize that relinquishing your underperforming assets instead of your lucrative ones could cushion your tax liability.
Selling your underachievers paves the way for valuable tax deductions, unlike their winning counterparts that add to your tax burden.
The aspiration to pay less tax is more straightforward than devising the right strategies. Enter Playbook: your handy, tech-savvy sidekick in this financial adventure.
The fintech prodigy, Playbook, scans your portfolio like a detective, suggesting the most tax-efficient accounts and spotlighting opportunities for tax loss harvesting.
But is Playbook the perfect match for you? And is its price worth the candle? Let’s peel back the layers in this comprehensive Playbook review.
What Is Playbook?
David Hegarty breathed life into Playbook in July 2021, blending the features of a robo-advisor and a tax advisor into one sleek app.
This brainchild of the San Francisco startup ecosystem presents tax-advantaged savings solutions for all your accounts, regardless of whether Playbook manages them.
With Playbook as your financial ally, you have two exciting options. You can lean on its insightful advice, taking cues from your account information to formulate recommendations. Or, you can let Playbook take the reins, actively managing your funds and nudging more cash into tax-friendly accounts.
Playbook doesn’t challenge the market but instead unearths every possible opportunity to bolster your returns. Accounts under Playbook’s watchful eye subscribe to a cost-effective investment strategy, exempt from investment fees (except for the ETF fees levied by the investment firms).
Features of Playbook
Playbook is your ticket to lower taxes, especially if you earn a high income. Here’s a glimpse into the key features Playbook brings to the table:
- Tax Planning
Playbook crafts a master plan to squeeze every bit of value from tax-advantaged accounts. The strategy commences with securing your employer’s 401(k) match, filling your Roth IRA, maxing out the remainder of your 401(k), and then moving to a brokerage.
If you cannot make some of these moves, Playbook identifies alternatives to ensure tax-efficient investments. It helps you set financial goals for up to five years or more.
- Automatic Funds Transfer
Once your plan is ready, Playbook shifts your money without breaking a sweat. Don’t mistake Playbook for a simple automated savings app, though. It employs robust algorithms to allocate funds to the right account at the right moment.
You can earmark accounts for financial goals, emergency funds, and your Roth IRA or an equivalent. Playbook won’t touch your money without consent but facilitates “easy button” transfers for seamless investing.
- Easy Playbook Accounts Setup
If you don’t have suitable accounts, you can set up new ones with a few clicks. Playbook, when managing your accounts, invests on your behalf using a low-cost index fund strategy.
Since it doesn’t charge for assets under management, it’s a sound deal for most users.
- Flat Monthly Fee
Unlike most robo-advisors, Playbook operates on a flat monthly fee. You can opt for a $29 monthly plan or an annual package costing $228 ($19 per month).
While it might not be the best fit for users with a small account balance, it’s an excellent value for those over $100,000 under Playbook’s watch.
Playbook Pricing & Cost
Playbook again deviates from the norm of most robo-advisors by opting for a flat monthly fee. After the free 7-day trial, you can choose between a $29 monthly plan or an annual subscription of $228 ($19 per month).
The fee may not be worth it for users with small account balances, but it’s excellent if you have more than $100,000 under Playbook’s management.
Even those with less may find Playbook’s automation and tax loss harvesting advice worthwhile. Playbook doesn’t charge any extra fees besides the negligible MERs on their ETFs.
Pros of Playbook
- Masters the art of tax-advantaged accounts usage
- Designs comprehensive financial plans
- Adopts bank-level security measures
- Detects overlooked financial opportunities
- It boasts a sophisticated tax-optimized investing system
Cons of Playbook
- Lacks advisory services
Is Playbook Worth Your Investment?
Playbook brings a fresh perspective to wealth building, prioritizing tax advantages to fast-track your financial freedom journey. Its simple pricing model caters to various investors, including high earners and self-employed individuals.
Although advisory services are missing, Playbook fills this void with powerful financial planning and automation tools fortified by state-of-the-art security measures. The platform pledges to discover overlooked opportunities and deploy tax-optimized strategies, potentially saving users substantial tax payments.
With a dedicated team of entrepreneurs and finance specialists backing Playbook, it transcends being just a wealth management service; it’s an empowering instrument for achieving financial freedom.
Thanks to modern tax tools and intelligent automation, it’s carving a niche in the financial technology sphere. Click here to sign up for Playbook and reap the benefits of the platform.
